{"id":960447,"date":"2021-12-24T16:40:03","date_gmt":"2021-12-24T21:40:03","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=960447"},"modified":"2026-01-13T14:11:28","modified_gmt":"2026-01-13T19:11:28","slug":"tqqq-vs-qqq","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/stock-trading\/tqqq-vs-qqq","title":{"rendered":"TQQQ vs. QQQ"},"content":{"rendered":"

While these exchange-traded funds (ETFs) boast similar names and track the same index, the QQQ is better suited to passive investors, while day traders and otherwise active investors may be better off trading the TQQQ. But the best choice for you will ultimately depend on your risk tolerance, investment goals and trading strategy.<\/p>

TQQQ vs. QQQ at a glance<\/h3>
Feature<\/th>TQQQ<\/th>QQQ<\/th><\/tr><\/thead>
Morningstar risk score<\/td>249 \u2013 Extreme<\/td>86 \u2013 Very aggressive<\/td><\/tr>
Management expense ratio<\/td>0.82%<\/td>0.20%<\/td><\/tr>
Number of holdings<\/td>110<\/td>102<\/td><\/tr>
Assets under management<\/td>31.06 billion USD<\/td>411.17 billion USD<\/td><\/tr>
Year-to-date (YTD) performance<\/td>44.41%<\/td>23.27%<\/td><\/tr>
1-year performance<\/td>35.22%<\/td>21.24%<\/td><\/tr>
3-year performance<\/td>78.34%<\/td>31.38%<\/td><\/tr>
5-year performance<\/td>23.89%<\/td>16.43%<\/td><\/tr>
10-year performance<\/td>37.41%<\/td>19.57%<\/td><\/tr>
Implied volatility<\/td>50.5%<\/td>18.74%<\/td><\/tr>
Distribution frequency<\/td>Quarterly<\/td>Quarterly<\/td><\/tr>
Dividend yield<\/td>0.70%<\/td>0.45%<\/td><\/tr>
Average trading volume<\/td>114, 619, 019<\/td>57,970,593<\/td><\/tr><\/tbody><\/table>

What is the TQQQ?<\/h3>

The ProShares UltraPro QQQ (TQQQ) is a leveraged ETF that aims to deliver three times the daily returns of the Nasdaq-100 index. It does this using financial derivatives and debt, rather than holding the underlying stocks directly. This makes the TQQQ more complex and higher-risk than standard ETFs.<\/p>

Its leverage resets daily, meaning the fund adjusts its exposure each day to maintain 3x leverage for the next day\u2019s move. Because of this daily reset, returns can deviate from 3x the index over time, making the TQQQ primarily suitable for short-term or intraday trading.<\/p>

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\nRelated: <\/span>How to invest in the Nasdaq<\/a>\n<\/div>\n<\/article>

What is the QQQ?<\/h3>

The Invesco Trust (QQQ) is a traditional ETF that also tracks the Nasdaq-100 index. Unlike the TQQQ, the QQQ holds the stocks directly and doesn\u2019t use leverage, making it simpler and more cost-efficient.<\/p>

The QQQ has a low expense ratio of 0.20% and high liquidity, which makes buying and selling shares straightforward. It\u2019s good for long-term, buy-and-hold investing while providing exposure to large companies in sectors like tech, consumer discretionary, communication services and healthcare.<\/p>

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\nRelated: <\/span>Technology ETFs<\/a>\n<\/div>\n<\/article>\n \n\n